CA Phone Betting To Be Legalized?

[Topcat]

I heard there was another bill making it's way through
the CA assembly to legalize phone betting in CA? Does anyone know the status of it?

Democratic Gov Grey Davis vetoed the last version. The Indian Casinos were major donors to his campaign and they lobbied hard against it and any internet gambling.
Davis fell right in line with their demands so I am not overly optimistic that this bill will make it.

[MikeH]

The bill was reportedly sent to his desk, maybe last week///

[Trijack]

According to an article in The Orange County Register this morning, monday is the deadline for Gov Gray Davis to sign or veto a bill allowing the state's tracks to establish a telephone account wagering network.

If the governor takes no action on the bill by monday, it will become state law as of Jan 1, 2002

[Topcat]

I've found out that Davis is being lobbied hard by two groups: His Indian casino buddies who gave him big time money and are against the bill and his union supporters who also donated pretty good to his campaign and are for the bill The unions are for the bill because it allows them to unionize the backstretch workers. The word I have is that the union is winning and the compromise Davis is looking at is letting the bill become law without his signature and then sign another bill that is working it's way through the legislature banning internet gambling. We should know by Friday afternoon.

Davis has also been told by his advisers that allowing phone betting will help increase the state revenue and lord knows he needs it now that he has signed CA up for power payments that are higher than the going rate.

So we may get phone betting in CA after all but no You Bet!

[Dave Schwartz]

TC,

Great political assessment.

Thanks.

Dave Schwartz

[Topcat]

As reported on the AP Wire:



Calif. Gov. OKs Phone Wagers on Horses

AP Headlines
• Union Lobby Wins Out Over Casinos

more >


By Associated Press
SACRAMENTO, Calif. -- California Gov. Gray Davis approved a bill that will allow horse racing fans to bet by phone or the Internet beginning next year.

Davis vetoed similar legislation last year because it was considered an expansion of gaming. But he signed the bill Monday after noting there was a change in federal law that permits account wagering and receiving assurances that children won't be able to bet on races.

The bill also calls for workers who care for horses to organize unions and improves living condition standards. About 4,000 "backstretch" workers, many of whom are undocumented immigrants, are employed by horse trainers in California. They work as grooms, hot walkers and exercise riders and follow an annual racing circuit across the state.

State labor authorities raided racetracks last year, investigating possible wage violations against backstretch workers. The horse racing industry had been exempt from labor and living regulations that cover other state workers. The state lost its 13-year-old exemption from paying overtime to the backstretch workers in May 2000.

"This measure, as amended, will protect low-paid racetrack workers from abusive conditions, and will help to maintain the vitality and competitiveness of one of California's premier sporting industries, thoroughbred horse racing," Davis said in a statement Monday.

Internet and phone wagering on horse racing is already allowed in at least 10 states. The bill's supporters estimate that California's horse racing industry will garner between $20 to $30 million annually from the new form of wagering.

Under the bill's provisions, people can set up an account online or at a racetrack and place bets from their home. But some people believe the new law, which goes into effect Jan. 1, will change the state's gaming landscape.

[andicap]

This is a much needed shot in the arm for TVG, but interesting to see what happens at Santa Anita meet this winter controlled by Magna. Will they work together?

Also waiting to see what happens in NJ, which was trying to keep TVG out and do their own OTB.

As usual, NY is a mess, may not get cleared up until next year. City Council doesn't want to sell OTB at all. Depends heavily on what next mayor says and what state legislature decides to do next year.
See 2003 as possible debut for TV wagering/betting in NYS -- if we're lucky.

If Rupert Murdoch wins DirecTv, look for TVG to get entrance there (11 million homes) as Fox and TVG are partners.

Magna can't win this thing but it can be a spoiler perhaps. Questions is how much longer will TVG continue to be willing to lose money on this? As part of deep pocketed company, probably a while longer.
Alternative? License its technology to competitor or sue its competitors for patent violations.